Home Loan Finder® lets you compare home loans from across the market, from the big banks to smaller lenders, credit unions and online providers. You can compare mortgage rates, read up on individual products, apply directly with lenders or contact a mortgage broker. Your home buying journey starts here.

Earn Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.

How do I compare home loans?

When looking at mortgages the interest rate is very important. But there's a lot more to look at:

Interest rate. A lower interest rate will keep your repayments down. It's also important to decide whether you want a fixed or variable interest rate. Variable rates are often lower and have more flexibility but your rate can go up (or down) at any time. Fixed rates let you budget your repayments more accurately because you know your repayments in advance.

Repayment type. Most borrowers opt for principal and interest repayments, where you repay the principal (the money you've borrowed) plus interest together. Interest-only repayments delay the full cost of your loan as you only repay the interest at first. Interest-only loans are a good choice for some borrowers but you'll end up paying more in the long run.

Features. Always compare a loan's features, such as offset accounts and redraw facilities. But don't get a loan with a higher rate and extra features if you don't really need them.

Fees. Application, settlement and monthly fees can add to your mortgage costs. Be sure to factor them in, but remember that the interest rate matters more than fees in determining your costs.

How much do mortgages cost?

Your mortgage costs depend on the following factors:

Your interest rate. The higher the rate the more you pay in interest. If you're borrowing a lot of money even a small difference in the rate can add hundreds or even thousands of dollars to your repayments.

How much your property costs. The price of the property determines everything else.

How much you're borrowing (and your deposit size). If you've saved up a large deposit you won't have to borrow as much, making your repayments lower. If you have a deposit below 20% of the property's value you may have to pay lenders mortgage insurance too.

Fees. These may have less impact than the interest rate, but mortgage fees can add up. A loan's comparison rate can help you understand how fees and the interest rate affect your costs.

Government charges. When buying a property you should factor in how much stamp duty costs. You may also have to pay other government charges.

To get a better understanding of how the interest rate and loan amount can affect your repayment costs use our mortgage repayment calculator below.

Redraw facility. A redraw facility lets you take out extra repayments you've made into your loan to spend as you need. This lets you access extra funds for emergencies or unforeseen expenses. A useful feature, but the more you money redraw the longer your loan will take to pay off.

Offset account. An offset account is a transaction account which is linked to your loan. Any money deposited into the account offsets interest on your home loan. Imagine a loan of $100,000 which has an offset account with $10,000 in it. When interest is calculated on the loan, it’s only calculated on $90,000 because the $10,000 is offset for the interest calculation.

Portability. Aportable loan is one you can keep even when changing properties. It's convenient and saves you the need to refinance.

How do I actually apply for a loan?

The mortgage application process seems complex and scary. But once you break it down it's not that hard. Preparation is key:

Is your credit file in order? Find out how to get a copy of your credit file and make sure there are no errors on it. If you have defaults or late repayments on your file, make sure you can explain them. Close any credit cards you're no longer using.

Are you getting a joint loan? Think about how strong your relationship is with the other party. Changes to your relationship could make it hard if one party wishes to sell their part of the property.

Are you eligible for the loan? Borrowers generally need to be over 18 years of age. There are other requirements too, but those depend on the lender. Some will want you to have a good credit rating. Others might not allow you to buy inner city apartments. Always read the eligibility criteria before applying.

If you provide all the required information, your lender can approve your loan in 2 - 3 business days. Some lenders even advertise that they will provide a decision in as little as 60 minutes. Remember that the more complicated an application, the longer approval can take.

Pre-approval explained

Pre-approval means your lender will "conditionally" approve you for a specific loan amount. It'll take into account your income, debts and liabilities when deciding this. It's usually extended for a few months, allowing you to look for a property with a bit more confidence. It's important to note that pre-approval conditions can differ depending on the lender. Read our expert explanation of pre-approval to find out what to look for.

What paperwork do I need to give my lender when applying for a home loan?

Your lender wants to work out whether or not you can afford a loan. They will ask for a lot of information from you, including:

Personal details. Your full name, tax file number, driver's licence number or some other form of photo ID, phone number and address.

Employment details. Your lender wants to know about your job, how long you've been in your position and and may even ask for your employer's contact information to confirm these details.

Financial details. Your lender will want to know how much you earn and spend. They'll want to see recent payslips, as well as details of your expenses and debts including personal loans or credit cards.

Information about your property. The exact paperwork required will depend on the type of property you're buying. You'll need to tell your lender the property address, the type of property, number of rooms and more.

Got more questions?

Will my credit report impact my application? Your credit history is important when your lender evaluates your application. Lenders want borrowers who have a good track record of paying back credit cards and loans. This can be a good sign that they'll pay back their loan. Some lenders will auto-decline those with defaults. Others might give you a chance to explain them. Specialist lenders like Pepper, Bluestone Mortgages and Liberty consider borrowers with credit impairment issues. Be aware that they might raise the interest rate to accommodate the extra risk they're taking on.

Can I switch from a fixed rate to a variable rate or vice versa? Most lenders will allow you to switch from a fixed rate to a variable rate or vice versa but some may charge a fee for this. If you're switching from a fixed rate loan, be aware that you'll usually have to pay a break cost.

Can I negotiate a lower rate? The home loan market is competitive, so negotiating and asking for a better rate is a good idea. Before you do, make sure your credit file is in order and know what other offers are available in the market.

Why does my lender need a valuation of my property? Your lender will want to get an independent valuer to find out what the value of your property is. They'll then use this valuation to work out how much they will lend to you.

Other Searches on finder

The offers compared on this page are chosen from a range of products finder.com.au has access to and are not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of the terms "popular", "best" and "top" are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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If you’re self-employed and is interested in a home loan, you can check low documentation (low-doc) loan which is designed to cater applicants who are working for themselves. Please note that different lenders have different application requirements, so it’s best to check your eligibility and ensure meeting the requirements before submitting an application.

You may check our Low doc home loan guide and see the tips on how to compare such loans. After comparing the products in our panel, you can click the Go to Site button or the Enquire Now button and discuss with the lender your eligibility.

You’ll be best to seek advise from a mortgage broker and discuss options based on your needs.

Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

Yes, Last night’s Federal Budget contained measures aimed at easing housing affordability pressures and curbing foreign investment. New taxes on foreign investors are set to add more than $600 million to the budget over the next four years. Please check the guide on how budget 2017 will affect you.

Hi,
I am 65 and my wife is 51. We both have full time jobs.
We are hoping to purchase our first ever unit instead of paying rent as we do now. Would our ages be against us if we applied for a $700,000 loan? How much deposit would we need?
Thank you

Please note that we are a financial comparison and information website. We can’t give advice on your specific situation.

In Australia, there are anti-discrimination legislations that prevent lenders from discriminating borrowers based on age. You can find more details about maximum age limit for home loan borrowers on this page.

Lenders would also like to make sure that you meet the general lending criteria and that you can comfortably afford to repay the loan without having financial difficulties. This is why the older you are, the more it might be difficult for you get a mortgage approval.

Also, the deposit that you need depends on the type of loan that you are getting.

For your home loan options, you may want to get in touch with mortgage broker and discuss your circumstances and borrowing needs.

I am an aged pensioner and have my own property with a double garage and wish to improve it to liveable state.and need aloan to do so It is in a small country community which is going ahead. What are the chances of finance?

Hi Brian,
Thanks for the question, finder.com.au are a comparison website and we can only offer you general advice.

Your chance of receiving a loan will depend on a range of factors, including your income, assets and debts. One option might be to contact a mortgage broker and see what lenders or loans they suggest might result in your application being approved.

Hi Binod,
Thanks for the question, finder.com.au are a comparison website and we can only offer you general advice..

The definition of ‘Genuine Savings’ changes depending on the lender, but the below is what the Commonwealth Bank define as genuine savings:

– A savings pattern established over at least 3 months
– Term Deposit held for at least 3 months
– Shares held for at least 3 months
– Gifts held in your account for at least 3 months
– Cash held in your account for at least 3 months
– Equity in an existing property
– Inheritance money held in your account for at least 3 months

If your rental income fits into one of the above categories than for this lender it would be counted as genuine savings. I would recommend contacting a lender you’re interested in applying with and seeing what their policy is regarding rental incomes.

Hi. This website is great for comparing home loans but they are mostly not with the major banks.
Could you tell me if there is a website that deals mainly with the anz, nab, commonwealth etc similar to this one.
Thanks

finder.com.au is an online comparison and general information service and in fact, we do compare a wide range of products offered by many reputable Australian lenders including the ‘Big 4’ and specifically ANZ, NAB and the Commonwealth Bank, as you’ve mentioned.

You might be interested to compare competitive products by these lenders using the hyperlinks provided above.

Thank you for reaching out to finder.com.au. a financial comparison website and we can only offer you general advice.

Most lenders have a maximum percentage of the value of the home they will allow you to borrow, however, each lender has their own w structure of loans and how they lend money.

if you are looking to purchase or refinance it may be in your best interest to speak to a mortgage broker who can talk you through the lending process and also offer advice on your specific circumstances.

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